These companies all belong to the Facebook group
When Facebook was founded in 2004, the user came first. Because it is only when it is offered real added value that it stays in line and ensures growth.
At some point, however, it is probably the case in every large company that as soon as a threshold of users is available, only the money is in focus. And all the more so when a company goes public and shareholders expect dividends. In order to be able to continue to grow, it is not only important to bind more users to the core product (namely Facebook), but also to keep an eye on the competition.
As is well known, it does not sleep, and could easily jeopardize its dominant position with similar products. So in order to remain the No. 1, you simply make an offer to the competition that they cannot refuse. The amount of money paid for a takeover in the past by Facebook can make you dizzy.
Read below which companies have been bought by Facebook in the past and now belong to their own group.
These companies all belong to the Facebook group
When Facebook was founded in 2004, the user came first. Because it is only when it is offered real added value that it stays in line and ensures growth.
At some point, however, it is probably the case in every large company that as soon as a threshold of users is available, only the money is in focus. And all the more so when a company goes public and shareholders expect dividends. In order to be able to continue to grow, it is not only important to bind more users to the core product (namely Facebook), but also to keep an eye on the competition.
As is well known, it does not sleep, and could easily jeopardize its dominant position with similar products. So in order to remain the No. 1, you simply make an offer to the competition that they cannot refuse. The amount of money paid for a takeover in the past by Facebook can make you dizzy.
Read below which companies have been bought by Facebook in the past and now belong to their own group.
1. Takeover of Instagram
1. Takeover of Instagram
Instagram was originally founded as an online photo and video sharing service in 2010 by Kevin Systrom and Mike Krieger.
Even back then it was clear that there was great potential here with growing data transfer rates, especially in the mobile area. Because images are most often shared on social media today. The only thing the founders lacked at the time was a mature business model of how to monetize their own product.
At the time, Facebook was of course much more mature, and knew about the power of images on the Internet, and above all what enormous potential there is at the start to make money through advertising.
And so in 2012 Facebook bought Instagram, which was still very small at that time, with its just 12 employees for a whopping US $ 1 billion (around EUR 760 million).
At that time it was the highest amount ever paid for an online digital photo service.
However, the investment for Facebook was definitely worth it, because in 2018 around 1 billion people worldwide (15 million in Germany) used Instagram, and there they diligently share pictures of your life.
Alongside YouTube, Instagram is one of the most important channels for influencers to finance their livelihood through advertising revenue.
Instagram’s estimated annual sales in 2018 were already over $ 1.5 billion. And if you wanted to rate Instagram as an independent company, it would already be over $ 100 billion.
From this perspective, the investment of $ 1 billion is of course quickly put into perspective.
Instagram was originally founded as an online photo and video sharing service in 2010 by Kevin Systrom and Mike Krieger.
Even back then it was clear that there was great potential here with growing data transfer rates, especially in the mobile area. Because images are most often shared on social media today. The only thing the founders lacked at the time was a mature business model of how to monetize their own product.
At the time, Facebook was of course much more mature, and knew about the power of images on the Internet, and above all what enormous potential there is at the start to make money through advertising.
And so in 2012 Facebook bought Instagram, which was still very small at that time, with its just 12 employees for a whopping US $ 1 billion (around EUR 760 million).
At that time it was the highest amount ever paid for an online digital photo service.
However, the investment for Facebook was definitely worth it, because in 2018 around 1 billion people worldwide (15 million in Germany) used Instagram, and there they diligently share pictures of your life.
Alongside YouTube, Instagram is one of the most important channels for influencers to finance their livelihood through advertising revenue.
Instagram’s estimated annual sales in 2018 were already over $ 1.5 billion. And if you wanted to rate Instagram as an independent company, it would already be over $ 100 billion.
From this perspective, the investment of $ 1 billion is of course quickly put into perspective.
2. Takeover of WhatsApp
2. Takeover of WhatsApp
With the market launch of smartphones with the iPhone in 2007, the end of the good old SMS was heralded, and the triumphal march of messenger services began at the same time.
The rapidly growing use of messenger services, which made multimedia, the quick and uncomplicated exchange of photos, videos and text messages possible, was also a serious competition for Facebook. For what should I share posts on a platform like Facebook, if it is still on the smartphone is much easier. Especially since the existing contacts are immediately integrated there.
WhatsApp was founded in 2009 by Jan Koum and Brian Action as a short message service and, as already mentioned, already offered great potential at that time. Facebook recognized this early on and bought the service in 2014 for an impressive $ 19 billion.
There seems to be the mere $ 1 billion that was still flipped for Instagram almost like a charity.
But this investment was also more than worthwhile for Facebook.
In 2018, 1.5 billion people worldwide (31 million of them in Germany) were using the popular messenger service, sending around 55 billion messages a day. Facebook has so far not achieved much in the form of cash (at least in relation to the amount invested), but this is likely to change soon, as advertisements will be placed in the future, which of course also offer some potential with such a high number of users.
The investment was worthwhile for Facebook because data (and what can be made of it) is incredibly valuable.
The only thing that remains to be seen is whether WhatsApp can continue to bind users to itself if advertisements suddenly appear that are in the context of the message content sent. Because competition that takes data protection a little more seriously has been on the market for a long time.
With the market launch of smartphones with the iPhone in 2007, the end of the good old SMS was heralded, and the triumphal march of messenger services began at the same time.
The rapidly growing use of messenger services, which made multimedia, the quick and uncomplicated exchange of photos, videos and text messages possible, was also a serious competition for Facebook. For what should I share posts on a platform like Facebook, if it is still on the smartphone is much easier. Especially since the existing contacts are immediately integrated there.
WhatsApp was founded in 2009 by Jan Koum and Brian Action as a short message service and, as already mentioned, already offered great potential at that time. Facebook recognized this early on and bought the service in 2014 for an impressive $ 19 billion.
There seems to be the mere $ 1 billion that was still flipped for Instagram almost like a charity.
But this investment was also more than worthwhile for Facebook.
In 2018, 1.5 billion people worldwide (31 million of them in Germany) were using the popular messenger service, sending around 55 billion messages a day. Facebook has so far not achieved much in the form of cash (at least in relation to the amount invested), but this is likely to change soon, as advertisements will be placed in the future, which of course also offer some potential with such a high number of users.
The investment was worthwhile for Facebook because data (and what can be made of it) is incredibly valuable.
The only thing that remains to be seen is whether WhatsApp can continue to bind users to itself if advertisements suddenly appear that are in the context of the message content sent. Because competition that takes data protection a little more seriously has been on the market for a long time.
3. Takeover of Oculus VR
3. Takeover of Oculus VR
Oculus VR is also one of the younger companies that were bought by Facebook because there was no direct competitor in the room, but a development that offered further opportunities for diversification.
Oculus VR was founded in 2012 by Palmer Luckey, Brendan Irive, Nate Mitschell and Michael Antonov. The original idea was to implement a virtual reality that could not only be used for computer games, but also in many other areas such as medicine or industry.
Oculus VR was bought by Facebook in 2014 for an affordable $ 2.3 billion. The business model here is by no means limited to advertising and e-commerce. Because virtual reality is not a hype that has been forgotten in a few years like the 3D TV sets that could not really prevail.
And so of course there are also the possibilities of media subscriptions, in-app sales, premium content, communication services and much more besides the hardware sales. at.
The takeover of Oculus VR has shown that Facebook’s core business continues to be user data and its utilization, but if you want to grow, you have to think outside the box and also venture into new markets.
Oculus VR is also one of the younger companies that were bought by Facebook because there was no direct competitor in the room, but a development that offered further opportunities for diversification.
Oculus VR was founded in 2012 by Palmer Luckey, Brendan Irive, Nate Mitschell and Michael Antonov. The original idea was to implement a virtual reality that could not only be used for computer games, but also in many other areas such as medicine or industry.
Oculus VR was bought by Facebook in 2014 for an affordable $ 2.3 billion. The business model here is by no means limited to advertising and e-commerce. Because virtual reality is not a hype that has been forgotten in a few years like the 3D TV sets that could not really prevail.
And so of course there are also the possibilities of media subscriptions, in-app sales, premium content, communication services and much more besides the hardware sales. at.
The takeover of Oculus VR has shown that Facebook’s core business continues to be user data and its utilization, but if you want to grow, you have to think outside the box and also venture into new markets.
4. Conclusion
4. Conclusion
Of course, Facebook also made some bad investments, such as the acquisition of the Moves fitness app. But risk, like everywhere in life, is part of business. In any case, it is certain that Facebook has changed our lives just as much as Google, Microsoft, Apple, Amazon, and much more. Even if we do not use the services directly. Because the dominant position of a group and its subsidiaries (which in turn also have subsidiaries) has spilled over from the online world to the real world and affects all of our lives.
It is important to understand that responsibility for your own data cannot be outsourced to corporations or governments. Too often we experience that it is not politics, but money that rules the world. And companies have the money.
So take a closer look at which group is behind a supposedly independent company. You will be amazed at how few big players pull the strings.
Also read:
Which companies belong to Google
Which companies belong to Amazon
Which companies belong to Microsoft
Who is behind ChatGPT
Of course, Facebook also made some bad investments, such as the acquisition of the Moves fitness app. But risk, like everywhere in life, is part of business. In any case, it is certain that Facebook has changed our lives just as much as Google, Microsoft, Apple, Amazon, and much more. Even if we do not use the services directly. Because the dominant position of a group and its subsidiaries (which in turn also have subsidiaries) has spilled over from the online world to the real world and affects all of our lives.
It is important to understand that responsibility for your own data cannot be outsourced to corporations or governments. Too often we experience that it is not politics, but money that rules the world. And companies have the money.
So take a closer look at which group is behind a supposedly independent company. You will be amazed at how few big players pull the strings.
Also read:
Which companies belong to Google
Which companies belong to Amazon
Which companies belong to Microsoft
Who is behind ChatGPT
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